Kathmandu: The Federation of Small and Medium Enterprises Nepal has urged with the government to consider exemption in interest rate for the small and medium scale enterprises (SMEs) in the country hit hard by the COVID-19 pandemic.
The recommendation was furnished here today during a meeting with the Industry and Commerce, Labour and Consumer Interest Protection Committee under the House of Representatives about the measures to be taken by the government to reform and revitalize the flagging conditions in the SMEs as well as cottage industries in the ongoing pandemic.
The Federation recommended to provide loan up to Rs 10 million to the SMEs that contributes in job creations as per the interest of the banks.
The Federation also advised to incorporate programme in the government's monetary policy that provides loan to the impoverish communities and engages them in the SMEs.
Federation's senior vice-president Umesh Prasad Singh argued that the SMEs should also avail as much as facilities and privileges like those industries falling into the special economic zone.
The Federation has urged to provide 50 per cent subsidy or not exceeding Rs 500,000 in the cost price of the tools and equipment that are used by the enterprises that are based on local raw materials such as Allo, Babiyo, , Lokta and Sisnu and Banana.
Furthermore, the Federation has demanded cent per cent custom duty exemption on the equipment to set up industries employing innovative technologies for and by the youths returning home from foreign countries.
Utilization of the skills and capital of the youths returning from foreign employment has been underscored.
There are a total of 470,681 SMEs registered in Nepal from 1990 to last fiscal year, among them 352,427 were in operation, according to the Department of Industry.
These enterprises have Rs 50 billion of investment in total and have provided employment to more than 2.8 million people.
Receiving the recommendation letter of the Federation, Committee's President Bimal Prasad Shreevastav pledged to address the issues of the small and medium scale entrepreneurs after holding consultation with the stakeholder Ministries.
